Share buyback approvals may not be at the levels witness between 2006 and 2008, but the current pace suggests 2010 could be the third best year ever. The number of authorizations to date point to US$413-billion worth of share repurchases this year, according to Birinyi Associates.
The compares to a paltry US$69-billion achieved by the end of October 2009.
However, between the end of the third quarter of 2009 and now, there has been a US$48-billion increase in executions quarter-over-quarter, representing a 54% gain. That number is US$17-billion more than the US$31-billion increase from the second to third quarter, Birinyi noted.
Consumer staples had the largest number of buyback programs authorized with 31, while the communications sector posted the largest dollar value at US$22-billion.
In terms of one-day performance, however, the materials sector saw the most positive impact, rising 4.06%, while utility stocks fared the worst, declining 2.13%.